Capacity Management | 20% Cuts in Hospitality Capacity to Tackle External Threats

The external environment facing the UK hospitality industry looks as bleak as the winter weather. So many pubs, restaurants and hotels are looking to cut capacity in the short-term to reduce costs and conserve cash.

A useful article for students here in The Guardian describes how the hospitality industry is responding to a wide range of external threats. These threats include:

• Rising energy costs
• Staff shortages and demands for wage increases
• Falling consumer confidence

How is capacity being cut? By

• Restricting opening hours
• Closing for more days of each week

Capacity cuts of around 20% are being reported, just simply to be able to better match supply and demand.